It is essential you know what you want to achieve when selling your home. If you need to sell your home quickly, dropping the price of the house can be an effective strategy. A low price attracts interest, and it is likely a buyer will make an offer quickly if they think they can get a bargain.
However, most vendors want to achieve the best price possible. Therefore, it is crucial to choose an estate agent who can help you get the best price for your sale. Some homeowners appreciate the kudos that comes with selling their home for a more substantial fee, while other homeowners know that the higher the sales price, the more flexibility they have with their next move. No matter the reason you have for looking to obtain the best sales price, the right agent will make a difference.
Of course, a recent investigation in The Times has caused some concern over estate agent actions. A study of more than 200,000 properties listed online has shown that some homes have been overvalued by 20%. Leading estate agencies named in the report include Foxtons, Hamptons International and Chancellors.
While some media sources have taken this information and stated estate agents do this to make more commission, this isn’t the case. The commission relates to the sales price, and as many of these homes eventually sell for a lowered price, the agent is gouging more money out of the vendor. However, a higher valuation helps estate agents win instructions.
Given that many vendors want the best price for their home, it is natural they will give instructions to the agent that offers the highest valuation of the house. Savvy vendors may question one vendor placing a significantly higher value on a home than other agents, but in the property market, people want to believe they can sell their house for a higher price. Therefore, an agent who values a home at a higher price has a strong chance of winning instructions.
For Foxtons, 60% of their listed properties were reduced in price before the sale occurred. The national average stands at 32%, so this is a strategy the company uses. Foxtons released a statement saying; “We always price properties competitively in partnership with homeowners.” While the NAEA have defended higher values, they have admitted that some unscrupulous agents use this tactic to gain instructions.
In a competitive marketplace, it is no surprise some agents use this tactic to gain work and instructions from clients. However, these agents aren’t always the best at selling a home. A vendor who wants to feel confident about selling their house should call on an agent who has experience and expertise in the marketplace. The right agent justifies the value they place on a home, helping the vendor to make an informed decision.
If you are looking to sell your home, contact Austin Property Services, and we will be more than happy to assist you.